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Little Known Secrets of Cashflow.

How YOU control Your Cashflow Decides Your Personal Wealth.

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Step Three: Control YOUR Cashflow.

Cashflow of a Poor Person.

Cashflow of a Professional or Middle Manager.

Cashflow of a Wealthy Person.

Which way does your Cash Flow?

If you Want to be Wealthy you have to Build up Your Assets and change the way you Think about Your Income.

For those of us who are or were employed, cashflow income is in the form of salary and expenses are those things we choose to spend it on. Most salary earners struggle to keep their financial affairs in order.

This is not Your Fault.

No-one has shown You How to Manage Your Money. We all tend to spend more than we earn by using Credit Cards and Loans to support the lifestyle we would like. This is How the Banks have taught us to Manage our Income.

While we keep earning we can stay afloat even though we need regular increases in salary to help. If we stop earning income our liabilities will send us bankrupt within 6 weeks, in most cases, unless you make some drastic changes like sell the car, house, TV, VCR, computer etc.

Rich people get their main income from their investments and they keep their liabilities well below that income. Incidentally, the Rich people always keep their liabilities below their income, even before they get Rich. If they stop working, the money keeps on flowing in. How smart investors are earning a nice and easy $35,000 a year from their investments.

Robert T. Kiyosaki's book "Rich Dad Poor Dad" has a very good explanation of this procedure and his book "The Cashflow Quadrant" expands on this idea to fully explain it.

Summary of the differences between Rich and Poor.

The Poor person's income is eaten up by Liabilities and Expenses and they don't put any money into Assets for themselves.

The Rich person's income funds their Asset growth First and their Liabilities and Expenses last. Their income is supplemented by or entirely generated by their Assets.

George S Clasen, in his book "The Richest Man in Babylon", says that money flows towards the person who is skilled in it's management and away from the person who is unskilled. The Message here is "you better get skilled fast".

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